Revelations that United States government surveillance reaches farther than previously believed and that technology companies are involved threatens to upend cloud computing.

Google, Apple, Facebook and Microsoft are just a few of the companies recently revealed to be sharing user data ? a growing portion of which is stored in the cloud ? with the government. With U.S. citizens, the media and privacy groups up in the arms over the extent of the government?s surveillance, this could slow the growth in cloud computing, which makes data accessible via the Internet.

?At a corporate level there are armies of attorneys and security professionals sorting through the risk scenarios associated with this unfolding turn of events,? said Lou Casal, senior director of product marketing at SDL, New York. Depending of the type of information, the risks and liabilities some organizations may decide to hold off some of their cloud efforts for now.

?In contrast, I imagine some organizations could simply add another disclaimer within their customer agreement that communicates that if requested by the government, they will hand over data,? he said.

Game changer
The cloud plays a highly significant role in mobile marketing as access to the cloud supports app development.

As more apps and services are offered via the cloud, more data is being collected and stored.

The revelations about government surveillance along with a growing awareness of the privacy issues related to reliance on technology consumers do not always understand could have a big impact on how companies do business going forward.

?This issue, along with other stories that have heightened consumers? awareness of how their personal identity data is used, has the potential to change the game,? said Andy Land, vice president of marketing at UnboundID, Austin, TX.

?Companies will feel increasing pressure to involve individuals in the use of their data ? consumers should have increased control over their data, including when and how their data is shared with the government or even with other companies,? he said.

?Offering this kind of transparency gives the consumer greater power over how their data is used, and our research shows that consumers think more highly of and are thankful to companies that give them this kind of transparency and choice,? he said. ?Part of this control would include notifying individuals that their data could be shared with the government, if requested.?

Potential risks
In the aftermath of the surveillance revelations, new potential risks have been introduced for companies that they need to address.

Company data is now seen as more vulnerable to hacking than may have been previously thought.

Additionally, companies have to figure out how to handle government requests for information while also addressing customers? desire for privacy.

?This creates a catch-22 situation ? if the organization complies with the agency?s order for information, they are potentially violating a regulatory mandate as well as any stated or implied promise to protect a customer?s personal information,? SDL?s Mr. Casal said.

?Furthermore, most regulations require that if there is some type of breach or data theft that they notify the customer ? again, this is in conflict with the agency?s gag order requirement,? he said.

Here to stay
The surveillance revelations alone may not have a significant long-term effect on cloud computing.

This is because the cloud has proven to be such as cost-effective business solution for app development, storage and data exchange.

Another reason the cloud is not likely to be significantly impacted is that it does not necessarily make consumer data more or less accessible if the government really wants it.

On top of this, consumers and marketers may not understand the significance of the government having such wide access to information about companies? customers.

To date, consumers have shown a willingness to give up data in exchange for services that matter to them. Marketers have benefitted from this by being able to sell the data or use it to deliver more targeted communications.

?The cloud is here to stay,? UnboundID?s Mr. Land said. ?Overhead is high, floor space and equipment are expensive, and running and maintaining data centers is challenging. Cloud computing gives even small companies opportunities for high-scale processing or data storage.

?The data is more accessible than ever before, and we don?t expect that to change, mostly because that data is a goldmine for these companies,? he said.

Concerned consumers
What it is likely to have an impact on is how marketers collect and share data going forward, especially to an increasingly savvy consumer.

?Our research shows that consumers are starting to demand or expect more, that they are learning that their data has value,? Mr. Land said. ?Marketers aren?t prepared to barter with consumers for their data, so it?s going to take a shift for them to be ready.?

Privacy advocates have been calling for greater transparency in how mobile companies collect and share user data for some.

The biggest impact of the surveillance scandal could be that this finally starts to happen now because consumers have been made more aware that this data is being collected.

?What we expect to see evolve is the amount of transparency, trust and control that consumers have over data stored in the cloud,? Mr. Land said ?Companies will likely re-assess their policies in light of the fact that the government may demand access, so it?s important that consumers understand their rights, and are given the choice to share or not share their data, with that knowledge.

?What companies need to understand is that they can?t just take a consumer?s data and use it as they please ? that behavior must change,? he said.

Taking action
A lot will depend on how the situation evolves going forward.

There is the potential for concern to reach a tipping point that will force marketers to take action, especially if there are further revelations. Or the issue may die down given some time.

?For the marketer, things could get tricky if the buzz and noise around this issue does not go away,? SDL?s Mr. Casal said. ?Mobile has a nice relationship between device and the cloud.

?With ?my data in the cloud,' I can access it via a number of devices,? he said. ?I offer Microsoft as an example: Regardless of the negative buzz around Windows 8, they seem to be on to something ? the UI is almost same experience on your phone, PC, tablet, Xbox, et cetera.

?If the data is in the cloud, what do I care how I access it. Unless I am concerned someone is watching.?

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York